euro zone finance ministers rush bank bailout. euro zone finance ministers rush to rebuild financial institutions in spain and patch up europe's latest trouble spot. the people responsible for the finances of euro zone countries are looking into spain's books and don't like what they see. the region's finance ministers met to find a way to help spanish banks and stop the spread of the crisis they share. >> reporter: euro zone finance

ministers seem to wake up every day to a new threat. they've already bailed out partners in greece, ireland and portugal. now they're following up on the demand from g-20 leaders to take quick measures to fix their latest problem. spanish government leaders expect to ask the european union to prop up its banks by monday. the finance ministers agreed that the european commission and the spanish government discuss the scale and the conditions of that. they decided to work out the details before they meet again next month. >> we have con foi dense that spain will ensure a swift process. independent auditors from abroad looked into the state of spain's commercial banks. they say those financial institutions need up to 62 billion euros in extra capital, about $78 billion. eu officials said they're ready to provide that and more. the finance ministers are still wrestling with the challenges of greece.

the new government wants to relax austerity measures necessary for billions of dollars in aid from the eu. the eu officials will visit government leaders in athens to check on their plans. they fear they will have to help out the troubled neighbor once again. nhk world, luxembourg. >> eu officials find new faces on the other side of the table in greece. prime minister anthony samaras has launched his new coalition government. his party won elections but fell short of the majority. samaras persuaded the parties to join the coalition. the leader has pushed to carry through with the austerity program of spending cuts and tax increases. the inauguration of a new government ends nearly two months of political deadlock and dampens speculation that greece

will leave the euro zone. greek leaders must implement the austerity measures to continue to receive eu aid. the leaders of all three ruling parties pledge to negotiate an easing of the requirements. a u.s. credit agency has downloaded 15 banks. moody's said the debt crisis lowered expectations of growth. their rate cuts affect institutions based in the u.s., canada and europe. credit suisse saw long time rating slashed by three notches. analysts downgraded ten banks by two notches, citigroup, goldman sachs, jpmorgan chase and morgan stanley. and lopered bank of america, hsbc holdings and two others by one notch. investors have been bracing for the changes since february when analysts placed the banks under review.

olympus are looking around for $600 million in new funds. olympus post aid net loss in the business year ending in march. former managers covered up investment losses over a number of years adding up to $1 billion. executives plan to implement streamlining measures such as consolidating factories to improve profitability. they will also boost their endoscope and units, thebusines. they hope to boost sales to $14 billion in four years and knelt profits of $1 billion. if the talks with sony fall, olympus may enter negotiations with fuji film holdings, have also showed interest. two long-time rivals are forging an alliance.

panasonic and sony are close to collaborating on the next generation televisions. the new television sets feature organic electric luminescence or oel displace. oel tvs are thinner and show a sharper picture than conventional units. the two rms hope the tie-up will cut costs and speed up development of the product. this alliance comes as the companies struggle with their tv operations. they aim to catch up with the korean industry, which is leading in oel tv production. panasonic and sony are also considering joint production of the new tvs. hitachi obtained negotiating rights over the project last year. on thurz date lithuanian parliament approved the plant's construction. the lithuanian government hopes the plant will begin operation around 2020.

hitachi made the proposal with general electric. the plant construction is expected to be worth $5 billion. if the deal goaes through the first time a japanese firm has won a contract to build a nuclear power station since last year's nuclear disaster in fukushima. now, politicians in japan are debating a tax reform plan that would generate revenue to help pay for the country's aging population. these seniors put a strain on the social security system collecting pensions and requires more health care. they're also doing their part to fuel the economy. take a look. people older than 60 accounted 44% of all overall personal spending in 2011. adding up to about $1 trillion that is. that kind of figure grabs the attention of retailers. some are starting to tailor their services to these seniors.

nhk world goes to a major supermarket that's caught on to thisreat power trend. >> reporter: take a look at this lineup of healthy side dishes. the green soybeans, cucumber salads and other dishes are placed in very small containers. they were made for health conscious elderly people. most seniors live in small family units and don't need big portions of food. even in the meat section the packages of pork contained a few slices each. these products are sold at this new type of supermarket that opened in the suburb in tokyo in april. the store is die signed to better serve the needs of elderly people. here at this clothing section, retailers are trying to appeal to senior customers by using special mannequins to promote

their product. take a look at this one. see how the mannequin has been modelled after physical features of a senior citizen. according to the store, seniors nowadays have very sophisticated lifestyles and a discerning eye. to appeal to these tastes, the store's expanding it's liquor section to include treats as quality imported wines. even the speed of the escalator has been slowed down. >> translator: my back and legs are weak, so i felt reassured coming down on a slower escalator. >> reporter: the store wants to avoid accidents on the escalators involving the elderly or people with disabilities. in addition, the supermarket invited a general clinic to open next to the store. it a open all year round and has 13 different medical departments. >> translator: i came to see an optometrist today.

i usually shop at this supermarket after my doctor's appointment. it's very convenient. >> translator: since we started special services for senior customers, we have been making better sales than we originally aimed for. it's important for all of our stores to expand such services. >> an executive chief economist at a leading research institute says seniors tend to be affluent with pensions and adequate savings. their spending can help boost japan. >> translator: the idea is that the money seniors spend would boost japanese firms where young people are employed. this will create more jobs and increase the earnings of young employees. all of this will strengthen the social security system and stimulate the economy. >> spending by seniors is expected to rise even more this year as those born in the

post-war baby boom start to receive their full pensions. this generation helped turn japan into an economic powerhouse in the '70s and '80s. now it's poised to once again boost the nation's growth. akiko o kikimoto, nhk world, tokyo. >> japan is the leading country in terms of populations aging, but many countries face similar shifts. experts with the world health organization say nearly one out of four people on the planet will be over 60 years old by the year 2015. insurgents have attacked a hotel on outskirts of kabul they took several hostages. police exchanged fire with the gunmen. they say an unknown number of people have been killed. they staged at take to target wealthy afghans and foreigners.

afghan president hamid karzai has called on lawmakers to stamp out corruption. donors asked repeat lead he do more to stop dealings within his government. donors are expected to pledge billions of dollars in aid at a conference next month in tokyo. karzai wants to calm fierce the money will be misspent. >> translator: we will go to the tokyo conference in a few days. god willing, donors will consider to pledge a similar amount of aid. >> karzai address aid joint session of the upper and low er houses of the national assembly. he said corruption reached a peak in afghanistan, and he said it's an ill that the government must cure. karzai hopes that delegates at the international conference will pledge $4 billion a year to development afghanistan in the coming years. nato-led troops are scheduled to withdraw in 2014. united nations officials are

criticizing an unseen threat from above. u.s. military personnel launch unmanned drones from their bases in afghanistan to carry out counterterrorism operations in neighboring pakistan. delegates at a u.n. conference have condemned u.s. military leaders for the unintended consequences of those attacks. >> about 300 drone strikes took place in pakistan alone, and according to some sources there is one civilian killed for each militant killed. >> emerson said u.s. government officials have not made public any information on their operations. he urged them to launch an investigation into the killings of civilians. a pakistani government official said the operations violate national sovereignty. he said authorities in pakistan have not approved any such operations. u.s. military personnel use the drones to attack members of al qaeda and other terrorists. they say the unmanned aircraft enable them to protect the public without losing troops.

they insist the operations are legal and ethical. chinese andlding events to years of dip lolomatic relation between the two countries. despite the festivities relations between the two countries are uneasy. one reason is friction over the senkaku islands. japan controls them and says they're part of its southernmost prefecture, okinawa, china says it owns them. in march, china's marine research ships started patrolling the seas near the senkaku island. tokyo will protect the senkaku island.

when he made the comment recently, tokyo's governor said he intended to buy some of the island from a private owner. china reacted sharply to the governor's plans. >> translator: comments by politicians of that stature not only harm bilateral relations and they tarnish japan's international image. >> reporter: many chinese people have joined in the criticism. >> translator: we should pressure and protest. >> throughout much of their history jash history, japan and china have had close economic and cultural ties and they have become strained over the senkaku island. in this edition of the china report we take a close look at the tension. we begin with a result of a survey how chinese and japanese feel about each other. a china ease nonprofit and newspaper linked to the government, conducted the poll

during april and may. it shows the that more than 80% of japanese have negative feelings towards china, the most since the survey started in 2005. 64.5% of chinese say they feel the same way about the japjapan. slight improvement over last year's figure but still high. and we are joined now from beijing. the poll indicates people from both countries distrust each other. what its behind this? susumu kojima. >> reporter: it >> if you talk a close look at people's responses, you understand how big an issue it is. almost 70% of the japanese say territorial dispults are getting in the way of better relations between the two countries. more than 50% of chinese say the same thing. it is a clear example of how confrontation at the diplomatic level influences people at the

grassroots level. >> translator: we don't have to compromise on territorial issues. >> translator: if we can't solve it peacefully we should call in the military. >> a chinese expert on japan/china relations said it is important that governments take great care when they deem with the territorial issues. >> translator: the bilateral relationship has cooled down. and public sentiment has been largely affected. especially in relation to -- territorial issues. people take exactly the same position as their governments. so how about china's latest dealing with the issue? >> cautiously. they are especially concerned that the situation could get out of hand if the chinese people

call for tough acttion against japan. ahead of the leadership change this autumn, the government doesn't want a repeat of what happened two years ago. a chinese vessel was in collision with two japan coast guard boats near tnear the islands. the government priority is to keep the nation stable. it wants to avoid damaging relations with japan to the point where they can be repaired. >> so, what do these negative feelings say about the future of japan/china relations? >> despite the hard feelings. 80% of people in both countries think good relations between the japanese and chinese are essential. >> translator: i hope japan and china have a good relationship in the future. >> translator: i wish two

contreaco countries could acooperate with each other and avoid friction. >> among those who have a big stake in stable relations, relations, chinese business people. executive over a chinese travel agency said after two years ago, a lot of customers canceled their trip to japan. he doesn't want to see the relationship get any worse. >> translator: our tourism industry is easily affected by safety ush uissues and politica situations. >> like it or not, the japanese and chinese are neighbors. they can only achieve a stable relationship if they can trust each other. well they have a long way to go. >> thank you very much. susima kochima in beijing. >> dispute over a chain of

island in the south china sea has left chinese and vietnamese lawmakers locked in a standoff. it took the move after vietnam approved a law claiming sovereignty over parts of the same territory. officials at china's civil affairs ministry say they have integrated administrative districts of several island chains into the new city and head quarters on an island in the paracel change. vietnam's parliament approved a law claiming sovereignty over the paracel islands. >> translator: claims of sovereignty over the paracel islands by any other country are illegal and invalid.

>> analysts believe chinese officials hope the new administrative district will discourage other nations from acting on their claims to the territory. people in japan's northeast are focused on overcoming the challenges of the 2011 disaster, but it won't be easy. they have to rebuild homes, businesses, entire communities. we'll show you their struggles and their successes on "the road ahead" every wednesday at 1:00 p.m. japan time here on "newsline." now some of the stories we are following this hour. prosecutors in norway say a man on trial for last year's mass murder rampage should not go to prison. they say he should receive treatment for mental illness instead. and he is accused of opening fire in oslo last july. a verdict is expected next month at the earliest. the court must decide if he can be held responsible for his

actions. the u.s. journal "science" published controversial research on a deadly bird flu virus. this followed debate that information could fall into the hands of bioterrorists. that scientist created strains of the h 5 n 1 virus that could be transmitted person to person through the air. they say publishing research could help prevent a flu pandemic. government officials in april retracted their call on the magazine not to publish the paper. ecuador's president says his country is studying the request for political asylum from julian assange. he said assange must meet his government avenue conditions for asylum. these include proving that his life is in danger. british police arrest add sed a. up next is our weather world forecast with sayaka mori.

>> hi, there. heavy rain in central japan is starting to weaken a little bit, thighs systems have produced lots of heavy rain across western japan. let's take a look at some footage out of the prefecture this morning. this area, has received 180 millimeters of rain in a span of 24 hours. the rain has caused widespread flooding and landslides and forced hundreds of people to evacuate. there will be reports of people having to be rescued, after a nearby drowning along the road that was flooded. western japan has been hit by a huge amount of rain over the past three days. in some places as much as 700 millimeters has fallen. which its more than what we usually see for the entire month of june. again, getting dry across much of the region. not out of the woods yet.

heavy thundershowers in southern islands offpan wi japan will be into this area starting saturday afternoon. meanwhile, heavy rain is ongoing across southern china china. as much as 100, 250 millimeters of rain is likely in parts of southern provinces over the next 24 hours. all right, heading over to the america americas, we have a wide area of disturbance over the gulf of mexico, spreading widespread thundershowers in the yucatan peninsula, florida, cuba, and the bahamas. this system could become a tropical cyclone within the next 48 hours or so. we will keep you posted on its progress. up towards the north, a line of the thundershowers are extending from eastern canada down to texas. as the the system moves towards the east, things will turn severe, and produce severe weather in the -- in the -- in the mid-atlantic region including washington, d.c. and

new york city on your friday. out towards the west, looking dry at this moment. but you will notice that rain will develop over the northern half of the plains on your fry day. that will be accompanied by thunderstorms, as well as the gusty wind. and out west, as low-pressure system moves in. things will turn quite wet and dusty. and unfortunately, the rain will not affect areas like nevada, wyoming, colorado, and utah where rain is desperately needed. temperaturewise, summer has officially started. but still on the chilly side. vancouver. 17 degrees. and 18 in seattle. but out east, very hot. 33 in new york city. 34 in washington, d.c. but as a cold front moves through, we'll -- we'll likely see cooler temperatures as we head into the weekend. all right. finally. let's go over to europe. heavy rain in the whole of the british isles. the low countries and northern portion of central europe.

will move towards the north and affect the scandinavian region over the next 24 hours. out east -- we have an area of severe weather. rolling into eastern europe. to the south, looking dry. plenty of sunshine for you. highs are getting up to 32 in madrid. 26 in rome. and another hot day in bucharest, with a high of 37. all right. here is your extend foerd cast. all right. here is your extended forecast. ♪ ♪

♪ ♪ our top story at this hour -- euro zone finance ministers confirmed that they will speed up the process to help spain's troubled banks.

this came after spain's report that it was officially ask the european union for support next monday. finance ministers of 17 euro zone countries held a meeting in luxembourg. in the meeting finance ministers decided the european commission and the spanish government would discuss the scale and condition for the aid. they confirmed that they would work on deciding the details at their next meeting. scheduled for july 9th. the spanish government said the country's commercial bank need a maximum of 62 billion euros in extra capital. however the eu said it is ready to provide up to 100 billion euros. that's all for now on this edition of "newsline." thank you very much for watching.